Eni unit receives federal permit for US Arctic offshore drilling
Achieving American energy dominance moved one step closer today with the approval of Arctic exploration operations on the Outer Continental Shelf for the first time in more than two years. The Bureau of Safety and Environmental Enforcement approved an Application for Permit to Drill Tuesday. Eni U.S. Operating Co. Inc. submitted the application in August. Drilling the exploratory well from a man-made artificial island in the Beaufort Sea is expected to start as early as this December. The Bureau's approval allows Eni to move forward with new exploration in federal waters, but only after a thorough review by BSEE Alaska Region personnel to ensure the request met appropriate technical adequacy, safety and environmental sustainability standards. According to Eni, new exploratory well operations will add an additional 100-110 jobs during the drilling of the well, and any potential plan of development is dependent on the results of Eni's proposed exploration wells. At a minimum, new development could lead to the creation of 100-150 jobs in the region and new production of 20,000 barrels of oil per day. Eni's exploratory drilling will take place on Spy Island, a man-made artificial island approximately three miles offshore of Oliktok Point, in State of Alaska waters. Both the island and Oliktok point are already home to Eni production facilities comprising 18 producing wells, 13 injector wells and one disposal well. Eni is now proposing to use extended-reach drilling techniques to drill into federal submerged lands.